Income Protection Comparisons

Income Protection Insurance Benefits

Many people fail to realise that your ability to earn future income is your biggest asset. The main benefit of income protection insurance is that it can secure up to 75% of your income should you be unable to work due to sickness or accident.

Common built-in benefits

Secures your future income – generally covers up to 75% of your income for either 2 years, 5 years, or until the age of 65.

Provides broad cover – if you fall victim to any sickness or accident that, on the advice of your doctor, will keep you away from work for longer than your waiting period, you will be entitled to your benefit. In this way, income protection insurance covers a far broader range of injury and illness than any other trauma policy.

Premiums can be Tax Deductible– the premium you pay towards your income protection cover can generally be claimed as tax deductible (link to tax page).

Waiver of premiums – You do not have to pay premiums whilst on claim.

Choose between two types of premiums – you can either pay a Level premium, which stays the same over time, or a Stepped premium, which initially is generally cheaper but increases over time.

Flexible waiting periods – varying from two weeks to two years, the longer your waiting period the less expensive your premiums.

Specific injury benefit – entitles you to your benefit if you sustain a specific injury, regardless if you are completely disabled, receiving treatment or are working.

Rehabilitation expenses benefit – entitles you to a reimbursement generally six times your benefit if you participate in a rehabilitation program.

Income Protection Insurance optional benefits

Increasing claim option – your benefit will appreciate in proportion with inflation once you are on claim.

Accident Option – generally allows you to claim your benefit 3 days into your waiting period if an accident renders you completely unable to work.

Critical illness option – entitles you to a lump sum payment at least six times your monthly benefit if you sustain an illness deemed a critical illness by your insurer.

Mental Health Discount Option – you can receive a premium discount on the condition that if you make a mental health claim, your monthly benefit period will be reduced to no longer than 24 months.

If you would like more detailed information on the range of income protection insurance benefits available to you, please contact one of our advisers on 1300 135 205.